Leading pallet truck retailer urges business not to panic amidst falling prices

Midland Pallet Trucks, one of the country’s leading providers of pallet trucks to a variety of industries, has urged retailers not to panic over the news that falling prices have continued for the 36th consecutive month. According to the latest data from retailers, prices – excluding food – fell by 2.6% in March, year on year.
As consumers continues to shop around for bargains, retailers are having to entice consumers with special offers and discounts in order to compete with one another. However it’s all not doom and gloom for the retail industry. The figures noted a slower rate of deflation that February, when non-food prices fell by 3%.
Phil Chesworth, Managing Director of Midland Bearings said, “It’s no secret that deflation has been hitting retailers for the last couple of years, however these figures will obviously be a case for concern for businesses. However the news that deflation has slowed down is a positive step for retailers everywhere, and it’s imperative that they build on this by offering quality products at competitive prices.”
Overall shop prices – including food – fell by 1.7% in March, compared with a year earlier. Again however, that was a slower rate of deflation than February, when annual prices were down 2%. Unchanged from February, food deflation was 0.4% last month, with fresh food, such as fruits and vegetables the driver of the price falls. The cost of fruit, milk, cheese, eggs, meat, vegetables and oils and fats were all lower than a year earlier, however shelf-stable food prices rose, driven by the higher cost of bread, cereals and alcohol.
The falling shop prices reflect weak inflation in the wider UK economy; annual inflation was 0.3% in February according to the Office for National Statistics, which is unchanged from January.